The Innovative Finance ISA is here

At the 2015 Summer Budget, it was confirmed by HM Treasury that holding peer-to-peer (P2P) loans within Individual Savings Accounts (ISAs) would become a reality. As of 6 April 2016, lenders are able to enjoy tax-free interest courtesy of the new Innovative Finance ISA (IFISA), which will cover loans arranged through peer-to-peer (P2P) platforms that have received full authorisation from the FCA, and ISA manager approval from HMRC.

We have now received confirmation of full authorisation from the FCA, along with ISA manager approval from HMRC, and will be launching the Lending Works ISA in early 2017!

Coming SoonIFISA: The details

Lenders will be able to set up a Lending Works ISA and enjoy tax-free returns on up to £15,240 (the individual annual ISA allowance across all three ISA categories) lent via peer-to-peer lending each financial year.

Furthermore, the limit of £15,240 relates only to funds subscribed during the current financial year, which means there is no limit to the amount of ISA capital accumulated over previous tax years which you can transfer into your Lending Works ISA.

What our customers say

After researching, Lending Works offered the best balance of competitive returns and credible protection to me.


How to set up your Lending Works ISA

Create your account
Fill in our short form
Open your ISA
Sign our T&Cs
Securely transfer your money
Start lending from just £10
Choose your rate
3 year or 5 year lending
Manage your repayments
Re-invest or take an income

Insurance-backed protection

Of all the things to worry about in life, lending your money shouldn’t be one of them. 

The Lending Works Shield includes a reserve fund to cover any missed loan repayments,
and unique insurance which helps protect against some of the key reasons for borrowers defaulting.

 The Shield

The result? Every penny of capital and interest has been returned to our lenders on time since we launched in 2014.

More about the Shield

Keeping you informedKeeping you informed

It's likely that you'll still have many questions relating to the Lending Works ISA. So, to simplify all the technicalities and clear up any uncertainties you may have, we've put together our ultimate IFISA guide.

You can also familiarise yourself with all things relating to the implementation of the ISA by reading our latest blog posts:

Get notified when we launch our ISA

With full FCA authorisation and ISA manager approval now in hand, we will be launching the Lending Works ISA in early 2017. If you'd like to know precisely when we launch our ISA, or if you'd like to be kept updated of developments with IFISAs in general, please leave your email address below:


“It has been another fiercely competitive year, but the likes of Lending Works continue to bring something fresh and more rewarding to the table."

“Lending Works has improved the protection given to investors by launching extended insurance for all its loans”

The Independent Logo for Lending Works Quote

Frequently asked questions

Who can open a Lending Works ISA? 

To open an ISA with Lending Works, you must be aged 18 or over and resident in the UK (or a Crown servant or their spouse or civil partner).

How much can I invest into my Lending Works ISA? 

You can invest up to £15,240 of new ISA funds for the 2016/17 tax year (6 April 2016 - 5 April 2017) and any income earned on those funds will be tax-free. You can also reinvest repayments on your loans without those counting towards your annual ISA subscription limit. In addition, any money you've saved or invested in ISAs from previous tax years can be transferred into your Lending Works ISA free of charge and won't count towards your annual ISA subscription limit.

Can I withdraw money from my Lending Works ISA? 

You can withdraw money from your Lending Works ISA, or transfer money to another ISA provider, provided the funds are available in your Wallet i.e. not on loan or allocated to borrowers. If your money is still on loan, you'll need to reassign your loans using the Quick Withdraw facility before the funds will be available for withdrawal.
Note: replacing cash you've withdrawn from any non-flexible ISA will still count towards your annual ISA subscription limit.

How many ISAs can I have? 

You can only subscribe i.e. save or invest new ISA funds into one ISA within each ISA category (cash, stocks & shares and innovative finance) each financial year. For example, once you've subscribed to a cash ISA in the current tax year, you won't be able to subscribe to another cash ISA until the start of the following tax year. The same applies to stocks & shares and innovative finance ISAs.
Note: these restrictions only apply to new ISA funds i.e. those saved or invested in the current tax year. You can transfer any money you've saved or invested in ISAs from previous tax years to as many ISAs as you'd like, provided the new ISA provider accepts transfers.

What is the Personal Savings Allowance? 

Before dipping into your ISA allowance, it’s worth considering whether you're eligible for a tax efficiency via the Personal Savings Allowance (PSA) first. With the PSA, basic rate taxpayers will be able to earn tax-free income (on both savings accounts and peer-to-peer platforms) of up to £1,000 each year, while for higher rate taxpayers this figure drops to £500. Unfortunately, additional rate taxpayers are not eligible for the PSA. It is important to factor other savings interest into your calculations, as this is not exclusive to peer-to-peer lending, but it's worth noting that returns from other types of investment e.g. stocks & shares are not included within the PSA.

More about the ISA